Thursday, March 18, 2021
Travelzoo (TZOO)
The Skies Are Looking Friendlier, But
Travelzoo is a US-based company which acts as a publisher of travel and entertainment offers. The company informs a varied number of members in Asia Pacific, Europe, and North America, as well as millions of website users, about the best travel, entertainment and local deals available from various companies. It provides travel, entertainment, and local businesses in a flexible manner to the various customer. The company operates in three geographic segments namely Asia Pacific, Europe, and North America. Travelzoo derives its revenue through advertising fees including listing fees paid by travel, entertainment, and local businesses to advertise their offers on company’s media properties. Most of the company’s revenue is derived from the North America.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Soft Q4 results. Revenues of $12.5 million was lighter than our $14.6 million estimate as travel restrictions kept consumers from leisure international travel. In addition, the revenues were below management’s previous guide. Operating cash flow stayed positive, however, at $569,000, although it was lighter than our estimate of $1.4 million.
Voucher sales remain strong. Consumers appear to have a heightened interest to travel. Voucher sales for future travel remains strong. As a result, the company’s cash position substantially increased from $51.7 million at the end of Q3 to $64.2 million (including restricted cash) at the end of December, 2020 …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
